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Service tax booking query

suresh (accountS ) (158 Points)

07 October 2011

seniors can you pls guide me

how service tax booking to be done .On the following advance receipt & how to adjuste BAL service tax booking and payment on the same

suppose i receive advance on contract rs-100000. and after 2 months i receive bill of rs-250000.00 ON CONTRACT COMPLETION how booking of service tax will take place

1.service tax booking will be on advance receipt and then balance on bill raised by us

so receipt ENTRY WILL BE

DEBTORS A/C.............. CR 1L

TO BANK A/C .............1L

BUT I WANT DO BOOKING OF SERVICE TAX ON ABOVE 1LAC SAY 4%.AND PAY IT IN 1ST QUATER AND BAL IN NEXT QUATER ON BILL ???????????????????????

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3 Replies

Giridhar S Karandikar (Team Lead) (7543 Points)
Replied 17 November 2011

For booking the service on the advance received, you will ahve to pass the following journal entry:

Debtors A/c Dr 4000

To Service Tax A/c 4000

After you receive the Invoice, books the service tax again by following the above entry on tha balance of teh amount.

1 Like

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 18 November 2011

Originally posted by : suresh
	seniors can you pls guide me how service tax booking to be done .On the following advance receipt & how to adjuste BAL service tax booking and payment on the same suppose i receive advance on contract rs-100000. and after 2 months i receive bill of rs-250000.00 ON CONTRACT COMPLETION how booking of service tax will take place 1.service tax booking will be on advance receipt and then balance on bill raised by us so receipt ENTRY WILL BE DEBTORS A/C.............. CR 1L TO BANK A/C .............1L BUT I WANT DO BOOKING OF SERVICE TAX ON ABOVE 1LAC SAY 4%.AND PAY IT IN 1ST QUATER AND BAL IN NEXT QUATER ON BILL ???????????????????????

advance and bill both received by you?

repost your query with correct data, and please mention that you are service receipent or service provider.

suresh (accountS ) (158 Points)
Replied 21 November 2011

Originally posted by : U S Sharma
	Originally posted by : suresh seniors can you pls guide me how service tax booking to be done .On the following advance receipt & how to adjuste BAL service tax booking and payment on the same suppose i receive advance on contract rs-100000. and after 2 months i receive bill of rs-250000.00 ON CONTRACT COMPLETION how booking of service tax will take place 1.service tax booking will be on advance receipt and then balance on bill raised by us so receipt ENTRY WILL BE DEBTORS A/C.............. CR 1L TO BANK A/C .............1L BUT I WANT DO BOOKING OF SERVICE TAX ON ABOVE 1LAC SAY 4%.AND PAY IT IN 1ST QUATER AND BAL IN NEXT QUATER ON BILL ??????????????????????? advance and bill both received by you? repost your query with correct data, and please mention that you are service receipent or service provider.

sir, we are service provider.1st we receive advance for our service ,after completion we get the balance amt so how service tax booking should take place ?